Wall Street Zen downgraded Reddit (RDDT) from a "buy" to a "hold" rating on Saturday. Despite this change, the consensus among analysts remains a 'Moderate Buy,' with an average price target of $232.58. This shift contrasts with the company’s strong October quarterly earnings report, where earnings per share and revenue significantly beat estimates.
The ratings change occurs amid reports of significant insider selling by top executives. Chief Legal Officer Benjamin Seong Lee sold approximately $8.1 million worth of shares across January 7th and 9th.
These sales follow recent activity by other top executives, including the CEO and COO. Insiders collectively sold over 505,000 shares during the last quarter. On Friday, January 9, Reddit's stock closed down 3.70% at $244.56, underperforming the broader market.